How do you know you need funding?
At some point while running a company, every business owner will discover a need for funding. It may be in the very early stages as a start-up, it may be to help maintain a healthy cash flow in an SME or it may be to facilitate a larger purchase or acquisition for an established company.
There are several key points in your company’s development where you may think it seems obvious to seek funding, but there are no rules on when you should explore your different finance options.
When it comes to raising finance for your business, the earlier you get in touch with an expert the more likely you are to find the right fit for you.
Finance for new and existing orders
For companies that trade on credit terms, it’s important to monitor whether sufficient cash flow is available to fulfil new orders before customers pay.
Large orders and long credit periods can really stretch your cash flow because of the upfront investment that’s required.
Certain finance solutions have been designed to help businesses get around this problem, making it possible to trade on credit terms without tying up cash.
Finance to buy a business
A common route to growth and expansion is acquiring other businesses that represent a good investment opportunity.
A large amount of money is usually required for this, and it’s not always possible for a business to rely on its existing cash flow for the purchase.
If you have identified a suitable acquisition opportunity, Hilton-Baird can help you find the right route to access the necessary funds.
Finance to buy plant and machinery
Keeping your plant and machinery up to date and functional can keep your business running smoothly and is essential to protect the longevity of your company.
However, new equipment doesn’t come cheap and buying it outright can have a significant impact on your cash flow.
There are specific funding options designed to help you spread the cost and get the best quality equipment with reduced risk.
Finance for growth
Whatever the size of your business, scaling up can require significant investment.
The most appropriate options can vary significantly, however, depending the stage of evolution a business is at. As an experienced commercial broker, we can help you identify the best match.
Finance to buy commercial property
Buying commercial premises is one of the most expensive purchases a business will ever make.
While a commercial mortgage is often the most suitable option to finance any purchase, the process can be complicated and a large deposit is typically required, generally around 30% of the property’s value.
It could be beneficial to consider utilising other funding methods that release cash to help you raise the required deposit, and as a commercial finance broker we can help you find the best option.
Finance for a Management Buy-Out
When a company is being sold, one option that holds several key advantages is a Management Buy-Out (MBO), which involves the existing management team taking ownership of the company.
While advantages for the company include a reduced risk of failure and reassurance for employees, existing clients and trading partners, the financial side of a Management Buy-Out can be complex and involve numerous parties and funding methods.
Thanks to our vast experience when it comes to MBOs, we are able to guide you through the process and find the right lenders and investors to make it a success.
Finance for a Management Buy-In
A Management Buy-In (MBI) works in a similar way to a Buy-Out, except it involves an external manager or management team buying the company.
As with a Buy-Out, Hilton-Baird has the experience necessary to guide you through the process, connect you with the right lenders and investors and facilitate a smooth purchase.